In this article, we look at the 5 countries with the lowest rate of economic growth in 5 years. You can see how we ranked these countries and also read more about the global economic dynamics in our article, 20 Countries With Lowest Rate of Economic Growth in 5 Years.
5. Palau
Average Real GDP Growth (2018-2022): -4.42%
Palau is a country in Oceania comprising more than 500 islands. It ranks fifth on our list of countries with the lowest rate of economic growth. Over the last five years, the economy shrank at an average of 4.42% each year, peaking in 2021 with a real GDP of -12.1%. The country is famous for its beaches, pristine dive sites, and stunning scenery.
4. Ukraine
Average Real GDP Growth (2018-2022): -4.80%
Ukraine’s economy has plummeted by over 30% since the Russian invasion in February 2022, rendering thousands dead and millions displaced. It has also resulted in food shortages and rising energy prices in not just Ukraine, but across Europe and the wider world. Having said that, Ukrainian companies have shown immense resilience as the war has waged on in a stalemate, and continued their business operations despite the conflict. FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (NYSE:TLTE), Vanguard FTSE All-World ex-US Small Capital Index Fund (NYSE:VSS), Vanguard European Stock Index Fund (NYSE:VGK) and Vanguard Developed Markets Index Fund (NYSE:VEA) are some best options to invest in ETFs with Ukrainian exposure, according to experts.
3. Lebanon
Average Real GDP Growth (2018-2022): -9.42%
Lebanon ranks third among countries with the highest negative GDP growth rate over the last five years. In 2021, government debt in the country had reached 495% of the GDP. Lebanon’s currency plunged to an all time low this year to 100,000 Lebanese pound against the US Dollar.
2. Macau
Average Real GDP Growth (2018-2022): -11.54%
Macau’s economy has been contracting since 2019 and has struggled immensely after the pandemic struck. In 2020, the economy shrank by an astonishing 54.2% according to the IMF. It recovered in 2021 recording a growth rate of 19.3%, before plummeting again in 2022 with a negative growth rate of -26.8%.
1. Venezuela
Average Real GDP Growth (2018-2022): -13.78%
Venezuela tops the list of countries with the lowest rate of economic growth in the last five years. The crisis that started under Hugo Chavez’s reign has continued under Nicolas Maduro’s government, leading to a complete economic collapse. Hyperinflation, food shortages, and increasing crime rates have led to massive emigration from the country. Western sanctions against the Venezuelan government have further hurt the economy that has contracted by an average of nearly 14% in the last five years. However, in 2022, the economy showed some signs of a recovery having grown by 8% according to figures released by the IMF, but the majority are yet to feel the benefits of the rebound.
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